Answer:
The correct answer is B: $724,000
Explanation:
Giving the following information:
Sales revenues for the period $1,214,000
Operating expenses for the period $230,000
Finished Goods Inventory, January 1 35,100
Finished Goods Inventory, December 31 40,100
Cost of goods manufactured for the period $495,000
We need to calculate the gross profit.
Gross profit= Sales revenue - cost of goods sold
Cost of good sold= Beginning goods inventory + Cost of goods manufactured for the period - finished goods inventory
COGS= 35100+ 495000 - 40100= 490000
Gross profit= 1214000 - 490000= $724000
